Did you know that 31 percent of Americans who order food delivery or takeout each week use a popular third-party delivery service like Postmates or UberEats? With so many people looking to earn extra side money as a delivery driver, it makes sense that we’ve seen an influx of these cars on the road in the greater St. Paul and Virginia areas. If you’ve been thinking about becoming a food delivery or rideshare driver, it’s important to consider how this new side job can affect your auto insurance coverage. Will you be able to drive under your current policy? Or can you rely on the company you drive with to provide proper car insurance coverage? Keep reading to learn more about your insurance options before becoming a delivery driver.
How Does Car Insurance Work for Delivery Drivers?
All third-party delivery and rideshare application require their drivers to have the state minimum level of liability insurance coverage before they can legally drive for them. But most personal auto insurance policies have exclusions that make it impossible to file a claim if you are involved in an accident while using your car for work-related duties. This means that if you hit another car while making a delivery, there’s a very good chance that your policy won’t pay for any damages. So, even if you’ve invested in a comprehensive car insurance policy, you could be left to pay for damages out of pocket if you are involved in an accident while on the job.
What About Company Provided Insurance Coverage?
Depending on which companies you drive for, you may be eligible for a rideshare or food delivery insurance policy offered by your employer. This is considered to be supplemental coverage that will pick up where the exclusions in your personal auto insurance policy leave off. However, it’s common for delivery companies and rideshare apps only to provide this coverage while the app is in use and you are in the process of making a delivery.
If, for some reason, you are in an accident while the application is running, but you’re waiting for your next pickup, you could still be left to cover the damages on your own. It’s important to read the fine print when accepting coverage provided by your employer, and if you feel like this is not enough coverage, to act accordingly to find a better option.
Additional Delivery Driver Auto Insurance Options
If the company you drive for doesn’t offer adequate insurance coverage, you may want to consider speaking with your local independent agent about other possible options. Some of the most common insurance policies available for delivery and rideshare drivers include:
Commercial Insurance Policy
A commercial insurance policy provides liability insurance for company vehicles., Since you are considered to be an independent contractor if you drive for a third-party delivery app, this type of coverage may work well to suit your needs. While this type of policy is typically more expensive than personal car insurance, it can give you peace of mind as you navigate the busy roadways and make deliveries.
Business-Use Policy
If you’re a part-time delivery driver who is simply using the apps to make cash on the side, you may qualify for a business-use auto insurance policy. With this type of policy, you can relay on the much-needed liability coverage required to drive and avoid any gaps in coverage legally.
Contact You Local Krog Insurance Agents Today
Ready to take on the role of a delivery driver? Make sure you have proper insurance coverage in place before hitting the road. Contact the knowledgeable team at Krog Insurance today for more information, and be sure to request a free quote.
